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Quantifying Policy Incentives: Ex-post Rewards Study

This study, conducted for the Millennium Challenge Corporation, analyzes the impact of incentives in a rewards system for policy change. The research includes quantitative analysis, indicators of mobility, correlations between indicators, treatment groups, and preliminary results. The study identifies key statistically significant results related to economic freedom, investing in people, and ruling justly. The overall findings offer insights and recommendations for policy-making.

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Quantifying Policy Incentives: Ex-post Rewards Study

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  1. The MCC Incentive EffectQuantifying Incentives for Policy Change in an Ex-post Rewards System Prepared for the Millennium Challenge Corporation by : Ingrid Aune Yanyan Chen Christina Miller Joshua Williams -- Spring 2013 --

  2. The Team and the Outline Ingrid Aune Christina Miller Joshua Williams Yanyan Chen

  3. Previous Quantitative Studies

  4. Data

  5. Source: Authors’ Calculations Indicator Mobility Top 10 Rank Change

  6. Correlation between Indicators Size is proportional to Correlation Critical Value = 0.3

  7. Correlation between Indicators (continued) Size is proportional to Correlation Critical Value = 0.3

  8. Plausible Conjectures of Treatment Groups

  9. Preliminary Analysis: Locally weighted scatter plot smooth (LOWESS) Treatment: Close to Passing or Failing Positive MCC Incentive Effect

  10. Preliminary Analysis: LOWESS (continued) Treatment: Qualitative MCC Incentive Effect Neutral/Mixed MCC Incentive Effect

  11. Preliminary Analysis: LOWESS (continued) Treatment: Middle Range Government Expenditures Negative MCC Incentive Effect

  12. Difference-in-Differences

  13. All Results: 38 (+) and 31 (-) Overview of General Model Results

  14. Select Statistically Significant Results: Economic Freedom

  15. Investing in People

  16. Ruling Justly

  17. Number of Results in Economic Freedom (Breakdown)

  18. Number of Results in Investing in People

  19. Number of Results in Ruling Justly

  20. Number of Positive and Negative ResultsDifferent Time Periods Economic Freedom Investing in People Ruling Justly

  21. Conclusions and Recommendations

  22. Recommendation to the MCC

  23. Questions

  24. Acknowledgements

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